Showing posts with label Daily Reckoning. Show all posts
Showing posts with label Daily Reckoning. Show all posts

Wednesday, December 21, 2011

Collective Action to Prolong the Economic Depression

by Bill Bonner
The Daily Reckoning

Have yourself a merry little depression…

What’s this? Christine Lagarde, IMF chief, said last week that the world’s nations needed to work together to avoid a 1930s-style depression.

But seeing the way they work together…and where they seem to be headed…we’d prefer a depression.

The idea of the world’s authorities is not to solve the debt problem, but to make it larger. One bank goes bust; they get a bigger bank – a central bank – to bail it out. One country goes broke; they get a bigger country to bail it out.

The US bailed out its financial sector. Europe has